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SC rules that NCLT not empowered to evaluate commercial decision of lenders on resolution plan

The Supreme Court has ruled that National Company Law Tribunal (NCLT) has no authority to evaluate the commercial decision of the committee of creditors (CoC) in insolvency cases. The CoC reserves the sole right with complete autonomy to approve or reject a proposed resolution plan. The court further said that there is no provision in the IBC that empowers the resolution professional, the adjudicating authorities (NCLT & NCLAT), to reverse the “commercial decision” of the CoC. Upon rejection of a resolution plan, the NCLT is obligated to initiate liquidation process under Section 33(1) of the IBC, it said.

Read More at The Financial Express News date : 7 Feb 2019, Thursday

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